Flipkart keeps its app-only plan on hold to assess how it will impact sales in big-ticket categories

According to Internet & Mobile Association of India and KPMG, India is projected to have 236 million mobile Internet users by 2016.Jayadevan PK | ET Bureau | August 24, 2015, 07:39 IST

According to Internet & Mobile Association of India and KPMG, India is projected to have 236 million mobile Internet users by 2016.Flipkart, the country’s top online retailer, has decided to put on hold its plans to go app-only because it has yet to assess how the move will impact sales in big-ticket categories such as large appliances and furniture, two company insiders said.

“Major sellers who retail white goods, electronics and large appliances are not convinced about the move,” one of them told ET.

“Flipkart might pick up the project (to go app-only) soon but as of now things have been stalled and September looks unlikely,” the company insider told ET.

Chief Product Officer Punit Soni, who leads the firm’s ‘Project Shaw’ initiative to go mobile-first, was looking to shut its desktop site in September. Soni did not respond to a message sent by ET as of press time on Sunday.

A company spokesperson said, “We are constantly experimenting with various aspects of our service to create the best shopping experience for our users on our app. Meanwhile, we continue to offer both desktop as well as mobile option for our customers.”

Flipkart said its mobile app accounts for 70-75% of the total traffic.

Besides the fact that a majority of Indians use smartphones to access the Internet, e-commerce players push mobile applications because apps provide more data on each user, allowing the firms to personalise user experiences based on interests and requirements gathered from users’ buying and browsing history.

Sellers of high-value goods sceptical

However, sellers of high-value goods seem skeptical of Flipkart’s app-only move. They believe such a move would cripple a user’s ability to research products effectively before deciding to buy. Industry insiders agree.

“Some categories are better viewed on a bigger screen,” said Sujayath Ali, CEO and co-founder of mobile app-based fashion retailer Voonik. “Also, going app-only will affect people browsing from office as well as price or value comparison,” he said. Flipkart-owned fashion retailer Myntrawent app-only in May.

At the time, Mukesh Bansal who heads Flipkart’s commerce platform, had said fashion is a personal experience and a mobile app works better for the category.

Nearly 95% of Myntra’s traffic and 70% of its sales were already coming from mobile. Bansal, who founded Myntra, was not available for comment. Ali of Voonik said the market is much larger for mobile than desktop and it’s growing faster.

According to Internet & Mobile Association of India and KPMG, India is projected to have 236 million mobile Internet users by 2016.

Flipkart started selling large appliances in April 2014 after it briefly stopped retailing them. Earlier this month, it also started selling furniture such as sofas and beds.